This article is from the Australian Property Journal archive
STOCKLAND has won over the board of Aevum after further consolidating its interests in the retirement living company.
Stockland now owns 64.13% in Aevum.
As a result, the Aevum’s board has unanimously recommended thatall Aevum shareholders accept Stockland’s revised offer of $1.77 per share in the absence of a superior proposal.
In addition, each of Aevum’s directors intend to accept Stockland’s revised offer in relation to the Aevum shares they own or control in the absence of a superior proposal.
Aevum chairman Graham Lenzner said Stockland’s revised offer provides shareholders with an opportunity to liquidate their holding at a price in excess of where the share price is likely to trade in the absence of a bid and many Aevum shareholders have taken up this opportunity.
“It is substantially less likely that Aevum shareholders would receive a future takeover offer, other than from Stockland itself. Further, there is no guarantee Stockland will make any such offer or that the offer price will be the same as or higher than the total value of Stockland’s revised offer,” he added.
Stockland is now in a position to gain control of the board and management team and determine important decisions about Aevum’s future.
Stockland has indicated it would, amongst other things, reconsider Aevum’s dividend policy, which may result in Aevum ceasing or reducing its future dividend payments.
Stockland’s CEO Matthew Quinn and retirement living CEO David Pitman will be appointed to the Aevum board.
Meanwhile Graham Lenzner, Melanie Willis, Phillip Anderson, Garry Cameron and Margaret Campbell will only continue as directors of Aevum until the conclusion of the annual general meeting to be held on 18 November. If however, Stockland reaches compulsory acquisition prior to this meeting, Graham Lenzner will resign as a director and chairman.
“Aevum residents can have confidence in our track record of delivering high resident satisfaction and our commitment to being a leader in the retirement living sector,” Quinn said.
Australian Property Journal
